Advanced Enzyme Technologies Ltd, which made a blockbuster listing earlier this year, said it has completed the acquisition of a 70% stake in bulk drugs maker JC Biotech Pvt Ltd for Rs 50.08 crore ($7.3 million).
The acquisition will help Advanced Enzyme in increasing its market share in its offerings to the Indian pharmaceuticals sector, it said in a filing to the stock exchanges.
JC Biotech, which is headquartered in Hyderabad, manufacturers an antiâ€inflammatory enzyme API serratiopeptidase and has a R&D pipeline of biopharmaceutical molecules. It has more than 50% market share in the production of API enzyme serratiopeptidase, Advanced Enzyme said.
Advanced Enzyme had said in early November that it planned to acquire a stake in JC Biotech.
JC Biotech has a production facility in Andhra Pradesh, and has the ability to expand its fermentation capacity, the statement said. It also has the technology for manufacturing algal DHA, an Omega 3 fatty acid which finds application in human nutrition.
JC Biotech’s revenue was Rs 39 crore with a net profit of Rs 2.5 crore in 2015-16. It posted revenue of Rs 37.3 crore and Rs 24.1 crore in FY15 and FY14, respectively.
Early in July, the initial public offering (IPO) of Advanced Enzyme was heavily oversubscribed. In August, the company made a strong stock market debut with its shares listing at a 35% premium to the issue price after its IPO turned out to be the second-biggest public issue in India by subscription in eight years.
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